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China Considers Reforms to Boost Income Amid Deflation

8/23/2025

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Story summary
  • China is considering reforms to increase household income and consumption due to ongoing deflation.
  • Proposed measures include raising rural pensions and enhancing family subsidies.
  • Previous strategies, such as the 2015 housing investment boom, are not being fully utilized, raising recovery concerns.
  • Consumer spending remains weak despite a stock market rally, and deflationary pressures continue.